Telesat Corporation (NASDAQ:TSAT) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analysts are bearish on Telesat: The six analysts covering TSAT give it an average “Reduce” rating, with two sells, three holds and one buy. The average 12-month price target is $33.50, below the reported $54.08 opening price.
• Recent results missed expectations: Telesat reported a quarterly loss of $2.21 per share versus the expected $0.67 loss, although revenue of $62.62 million slightly exceeded forecasts. Analysts expect a full-year loss of $4.01 per share.
• Institutional ownership increased: Several investment firms raised their stakes, including PenderFund Capital Management, which increased its position by 307.3%, and Millennium Management, which raised holdings by 245.4%.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) has been assigned an average recommendation of "Reduce" from the six research firms that are presently covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $33.50.

A number of equities analysts have recently weighed in on TSAT shares. Zacks Research downgraded Telesat from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. New Street Research began coverage on Telesat in a research report on Wednesday, May 13th. They set a "sell" rating and a $30.00 price target for the company. Wall Street Zen lowered Telesat from a "sell" rating to a "strong sell" rating in a report on Saturday, April 25th. Weiss Ratings reissued a "sell (d-)" rating on shares of Telesat in a research report on Thursday, June 18th. Finally, Scotiabank assumed coverage on Telesat in a research note on Monday, July 13th. They issued a "hold" rating for the company.

Hedge Funds Weigh In On Telesat

Institutional investors have recently added to or reduced their stakes in the stock. Gamco Investors INC. ET AL raised its position in Telesat by 2.5% in the fourth quarter. Gamco Investors INC. ET AL now owns 1,831,693 shares of the company's stock worth $53,302,000 after acquiring an additional 44,785 shares during the period. PenderFund Capital Management Ltd. grew its position in shares of Telesat by 307.3% during the 3rd quarter. PenderFund Capital Management Ltd. now owns 409,753 shares of the company's stock valued at $10,512,000 after acquiring an additional 309,153 shares during the period. Vestcor Inc increased its stake in shares of Telesat by 14.3% during the 4th quarter. Vestcor Inc now owns 200,000 shares of the company's stock worth $5,820,000 after purchasing an additional 25,000 shares during the last quarter. Senvest Management LLC increased its stake in shares of Telesat by 2.2% during the 1st quarter. Senvest Management LLC now owns 137,668 shares of the company's stock worth $4,984,000 after purchasing an additional 3,000 shares during the last quarter. Finally, Millennium Management LLC raised its holdings in shares of Telesat by 245.4% in the 4th quarter. Millennium Management LLC now owns 128,472 shares of the company's stock worth $3,739,000 after purchasing an additional 91,272 shares during the period.

Telesat Stock Up 5.5%

TSAT opened at $54.08 on Friday. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.25 and a quick ratio of 0.25. The company's 50-day moving average is $43.95 and its 200 day moving average is $41.08. Telesat has a fifty-two week low of $19.59 and a fifty-two week high of $59.12. The firm has a market capitalization of $802.55 million, a P/E ratio of -6.00 and a beta of 2.07.

Telesat (NASDAQ:TSAT - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($2.21) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.67) by ($1.54). The firm had revenue of $62.62 million during the quarter, compared to the consensus estimate of $62.03 million. Telesat had a negative return on equity of 4.02% and a negative net margin of 47.57%. Research analysts expect that Telesat will post -4.01 earnings per share for the current fiscal year.

About Telesat

Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat's infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications.

In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed.

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